Copyright

Copyright is the legal protection automatically granted to the creator of original works of authorship the moment they are fixed in a tangible medium. Covered works include literary, artistic, musical, software, and other creative outputs. Copyright provides exclusive rights to copy, distribute, perform, display publicly, and create derivative works for the copyright term (life of the author plus 70 years for individual works; 95 years from publication for works made for hire). It is the IP category that protects most of what software startups create (code, documentation, marketing content, designs, copywriting), automatic without any filing or registration, but with optional registration that provides meaningful additional rights.

The automatic-protection rule: copyright exists the moment a work is "fixed in a tangible medium of expression," with no requirement to register, mark with ©, or notify anyone. The author owns the copyright by default; for works made for hire (employee-created works within the scope of employment, and certain commissioned works under specific contracts), the employer owns the copyright. Registration with the US Copyright Office is optional but provides important benefits: ability to file infringement lawsuits in federal court (required for most enforcement), eligibility for statutory damages and attorneys' fees in successful infringement cases (otherwise plaintiffs can only recover actual damages, which are hard to prove), public record of ownership, and presumption of validity in court. Registration costs: $45-$125 per work depending on form and type. The 2020s reality for software startups: most companies don't register copyright on every piece of content but selectively register key assets (the main software codebase, branded marketing assets like logos and signature content). The work-for-hire question is the most-important one for startups: ensure all employees and contractors sign IP-assignment agreements that confirm the company owns their work product, otherwise contractors may retain copyright on the work they created for the company.

What founders get wrong: Hiring contractors without IP-assignment agreements, then discovering at acquisition diligence that the contractors arguably own copyright on the work they did. Every contractor, every consultant, every freelancer signs an IP-assignment agreement before the work starts. This is one of the cheapest pieces of legal hygiene and one of the most painful to fix retroactively.

Related: Trademark · Patent · Trade Secret · Work for Hire

FAQ

What is copyright?
The legal protection automatically granted to the original creator of literary, artistic, musical, dramatic, software, photographic, and other original works of authorship the moment the work is fixed in a tangible medium. Provides exclusive rights to copy, distribute, perform, display publicly, and create derivative works.

Do I need to register a copyright?
Not for protection (copyright is automatic at fixation). But registration with the US Copyright Office provides important benefits: ability to file infringement lawsuits in federal court (required for most enforcement), eligibility for statutory damages and attorneys' fees in successful cases, public record of ownership. Cost: $45-$125 per work.

How long does copyright last?
Life of the author plus 70 years for most works created by individuals. For works made for hire (employee-created within employment scope, certain commissioned works): 95 years from publication or 120 years from creation, whichever is shorter. Different rules for works created before 1978.